1st time plane buyer, needing advice.

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Tim Huff

Filing Flight Plan
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TimHuff
I am in the market to purchase my first plane, my question for this forum is, where should I register this plane? I’m currently in Kentucky, will be leasing it to a flight school in West Virginia and will be setting this up as a business and not as a personal use plane?

Thanks in advance for your help!
 
Kentucky's breaks won't apply to you if you're using it in a flight training business. WV varies from county to county about your tax liability. Which airport?

I hope you understand that leasebacks are fraught with perils. I've been on both sides (both as a club manager hunting leasebacks and as an owner leasing my plane). It's good that you are already thinking it as a business. Remember this is not your personal plane anymore. You get in line behind everybody else.
 
I’ve not ever heard of a leaseback that turns a profit. Only those that MIGHT defray the cost of ownership a bit.
 
Consult a tax attorney before making your decision.
 
A lot of good information in the thread you linked.

Thanks for the replies!
 
If you can live with a rental you can't own and fly it as cheap as renting, unless you plan on living in your plane and 100hr or more a year. And that is if nothing bad like a $40K engine change or more.
 
If it made financial sense the flight school would be buying the aircraft themselves. Tread carefully.
 
It depends on the flight school. AFAIK, my local flight school owns their aircraft.
 
dans2992 said:
I’ve not ever heard of a leaseback that turns a profit. Only those that MIGHT defray the cost of ownership a bit.
Click to expand...
Leasebacks can turn a profit, but there are many pitfalls that can make it a disaster. The key is that it is a business. To cover the overhead you have to have the aircraft rented. To have it rented it has to be available. This means: you have to keep maintenance in line, you have to make sure that you are not blocking it out for personal use, etc...

What leasebacks are NOT is a way to decrease costs of your personal use. If you want to do that, pick up a partner or two.
 
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